Business Services Industry

Generic drug companies fight threat from big brands.

Knight Ridder/Tribune Business News, August, 2004

By Lewis Krauskopf, The Record, Hackensack, N.J. Knight Ridder/Tribune Business News

Aug. 22--A divisive practice is roiling the generic pharmaceutical industry, with some companies saying consumers are losing out.

The practice involves "authorized generics," which are basically brand drugs with a generic label. A brand pharmaceutical company supplies its drug to a generic firm and allows that firm to market the product as a generic in return for royalties. Brand companies also have used their own generic divisions to launch authorized generics.

Many generic drug companies, including the industry's trade group, are alarmed that authorized generics are siphoning profits from generic companies during a six-month period where they...

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